After over 50 years of business, TGI Fridays, the restaurant chain known for big portions and colorful drinks is filing for bankruptcy.
In the face of years of losses, the company is using this bankruptcy to hopefully bounce back.
Here’s the story…
The Downfall of TGI Fridays
On November 2nd, TGI Fridays filed for Chapter 11 bankruptcy protection. In a statement, the company announced that it will begin a “restructuring process” to make the chain financially viable once again.
Most, if not all, of the financial difficulty that TGI Fridays is facing is due to the Covid-19 pandemic.
During the pandemic, many fast-casual restaurant chains with large real-estate footprints struggled. As more and more diners during lockdown craved cheap, fast meals…
These larger chains faced difficulty in pivoting their business models and accommodating these new needs.
Olive Garden has struggled with consumer changes during the pandemic and earlier this year…
Red Lobster filed for bankruptcy for similar reasons.
LAST YEAR, TGI FRIDAYS MADE $728 MILLION IN U.S. SALES. THAT’S DOWN 15% FROM THE YEAR BEFORE.
TGI Fridays, which TriArtisan Capital Advisors owns, has over 461 restaurants around the world. While 39 restaurants that are operated by TGI Fridays will stay open…
Restaurants owned by 56 independent franchisees are not involved in the bankruptcy process.
What’s Next?
TGI Fridays got its start in Manhattan in 1965. The chain is known for its atmosphere, happy hours, and for popularizing the Long Island iced tea…
But if the company can’t move forward from its past mistakes…
Then TGI Fridays might have to close its doors for good.
Be Great,
GCTV Staff
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